What kinds of companies and sectors are best suited for the public venture market? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.

Answer by Delilah Panio, Vice President, Capital Formation, Toronto Stock Exchange, on Quora:

There are two things to consider here... is the management team interested and ready to go public AND what companies can get financed in today's market.

Are you and your company ready to go and be public?

· Management Team: Your management team should be interested and ready to go public, and include a CFO with public company experience.

· Board of Directors: Your company will need a formal board of directors that understands its legal and fiduciary responsibilities as public company directors.

· Audited Financials: Two years of audited financial statements will be required.

· Internal Controls: Your company will need to establish the required financial controls and reporting infrastructure to be public.

· Time for Investor Relations: A significant amount of your CEO's time will be spent on communicating with current and potential investors.

· Transparency: Your company's financial information will be public to everyone including competitors, and you and your team need to prepare for that.

Can Canadian investment bankers get investor support (retail and institutional) for your type and size of company in current market conditions?

In today's market, Canadian bankers are looking for companies raising growth versus development capital. This means that the company has developed a commercially viable product, has early customers or interest, and now needs growth capital for customer acquisition and expansion. Typically, companies raising their Series B of at least $10M are of interest.

Sectors of particular interest include: CBD products and services, gaming and e-sports, SaaS companies with recurring revenue models, and health tech.

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Published on: Sep 20, 2019